Fresh policies come into force in Vietnam since April

New regulations on tontine interest rates, registration fee prices of houses and land, and internal auditing shall take force from April, 2019.

Tontine interest rates

Under Decree 19/2019/ND-CP on tontine, since April 5, interest rate in interest-bearing tontine is agreed by the tontine members or offered by every tontine member but not exceeding 20% (Article 21). 

Tontine member is a person aged at least 18 years of age. With regard to a person aged from fifteen to under eighteen, if the private property is real estate or movable property required for registration to participate in the tontine, he/she must obtain the consent of his legal representative (Article 5).

In addition, the tontine must be organized in compliance with basic rules of civil law in accordance with Article 3 of the Civil Code (Clause 1 Article 3).

Tontine holder is a person aged at least 18 years and must notify the local People’s Committee of commune in writing of organization of a tontine group which is at least VND 100 million (Articles 6 and 14).

The new Decree replaces Decree 144/2006/ND-CP, dated November 27, 2006.

New regulations on house, land, and car registration fees

Decree 20/2019/ND-CP shall come into effect from April 10 and replaces a number of articles of Decree 140/2016/ND-CP on registration fees.

Accordingly, since April 10, the registration fee calculation price for land is the land price in the land price list issued by the People's Committee of provinces and cities under central government in accordance with provisions of the law at the time of registration fee declaration. 

Registration fee calculation price for a state-owned house sold to the lessee in accordance with provisions of the law on sale of the state-owned house, is the actual selling price stated on the invoice under the decision of the People's Committees of provinces and centrally-run cities. 

The registration fee calculation price for cars and similar vehicles and motorcycles specified in Clause 6 and Clause 7, Article of the Decree (except for trailers or semi-trailers towed by cars) is the price in the Decision on registration fee calculation list issued by the Ministry of Finance.

The registration fee calculation price for used assets subject to registration fee payment (except for a used house, land and imported assets) is the remaining value calculated by the using time of these assets. 

For used cars and motorcycles, which are not included in the registration fee calculation list, the registration fee calculation price is the remaining usage value of similar vehicle types specified in the registration fee calculation list.

Three types of enterprises subject to internal audits

Under the Government’s Decree 5/2019/NĐ-CP (Decree 5), three types of enterprises are subjected to internal audits including (1) those listed on the stock exchanges and public companies owned at least 50% by the State running their own subsidiaries. Other subjects to the new decree include government agencies, ministries, city and provincial people’s committees, public service government units and individuals and organizations involved in internal audits.

The decree aims to make sure companies’ internal control systems are well-established and run properly to help mitigate risks.

Those subject to the decree are required to complete necessary preparations within 24 months from April 1, 2019 to conduct an internal audit as outlined in Decree 5.

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